Core Insights - The article discusses the significant risks facing Wall Street's leading quantum computing stocks, which have experienced a parabolic rally, highlighting the potential for a bubble and the challenges these companies may face in sustaining growth and profitability [1][4]. Industry Overview - Quantum computing is positioned as a transformative technology that leverages quantum mechanics to solve complex problems beyond the capabilities of traditional computers, with applications in drug discovery, AI enhancement, and cybersecurity [3]. - The economic potential of quantum computing is estimated to reach or approach $1 trillion in global economic value by 2035 to 2040, suggesting a substantial market opportunity for multiple companies [4]. Company Performance - The leading quantum computing companies, including IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing, Inc., have seen significant stock price increases over the past year, with gains ranging from 620% to 5,710% [9]. - Despite the impressive stock performance, these companies are currently facing substantial operational losses, indicating a need for capital-raising efforts that may dilute existing shareholders [8][10]. Valuation Concerns - The current price-to-sales (P/S) ratios for these quantum computing stocks are historically high, with estimates suggesting P/S ratios between 30 and 90 for 2029, which are not sustainable based on historical trends [12]. - The article draws parallels to past technology bubbles, suggesting that the current hype surrounding quantum computing may lead to similar outcomes as seen with previous innovations [6][7]. Competitive Landscape - The "Magnificent Seven" companies, which dominate the AI and cloud computing sectors, pose a significant threat to the pure-play quantum computing stocks due to their substantial financial resources and operational cash flow [14][16]. - Companies like Amazon are already integrating quantum computing services, which may limit the market opportunities for smaller quantum computing firms that lack the same level of capital and infrastructure [15].

Core Insights - The quantum computing sector has gained significant attention in 2025, driven by the increasing demand from AI, with a combined market cap of over $50 billion for key players like IonQ, Rigetti, D-Wave, and Quantum Computing Inc. [1] - Stock performance for quantum computing companies has been remarkable, with IonQ rising by 92%, Rigetti by 274%, and D-Wave by 400%, largely due to the strong connection between AI and quantum technologies [2] - AI and computing expenditures are expected to remain high through 2026, with quantum revenues projected to transition into actual bookings, and McKinsey estimates the quantum industry sales to reach around $1 billion by 2025, with a long-term market potential of $198 billion by 2040 [3] Company Insights - IonQ's CEO, Niccolò De Masi, has made bold claims about quantum computing potentially replacing current AI engines, challenging Nvidia's dominance in the AI space [4][5] - De Masi emphasizes the transformative potential of quantum processors (QPUs), suggesting they could eventually supplant GPUs, which currently dominate the market [6][7] - IonQ's latest hardware, Tempo, reportedly offers a computational capacity 36 quadrillion times larger than IBM's equivalent, outperforming nearly a billion GPUs, and has demonstrated significant efficiency in specific benchmarks [8]

Core Viewpoint - Martin Shkreli is shorting quantum computing stocks, criticizing their valuations and business models, while the stocks are experiencing a rally, leading to tension between bullish and bearish investors [1][4]. Group 1: Shkreli's Criticism of Quantum Computing Stocks - Shkreli has expressed skepticism about the commercial viability of quantum computing, accusing companies of inflating revenues through gimmicks and desperate acquisitions [2]. - He has labeled IonQ as "one of the best shorts" in his career, questioning the performance and reliability of IonQ and Rigetti's devices [3]. - D-Wave Quantum has been described by Shkreli as a "dead-end," citing its lag behind classical computing and a lack of support from DARPA [3]. Group 2: Market Reactions and Shkreli's Position - Quantum stocks have seen significant increases, with IonQ rising by 15%, D-Wave by 25%, and Rigetti by 21% in a recent rally [4]. - Shkreli has publicly expressed frustration regarding the pressure on his short positions due to the rally, indicating that he feels "far from okay" about the situation [4]. - Despite the rally, Shkreli maintains that the surge in quantum stocks is a "bubble" that is disconnected from the actual technological and commercial realities [4].

Group 1 - IonQ, Inc. is recognized for its focus on quantum computing, providing access to quantum computers and developing related hardware, security, and detection systems [1] - Jim Cramer commented on IonQ's financial performance, labeling it as "loss-making" and suggesting that the company may need to pursue stock offerings to raise capital, similar to trends observed during the internet crash of 2000 [1] - There is a belief that while IonQ has potential as an investment, other AI stocks may present greater upside potential and lower downside risk [2] Group 2 - The article mentions a report highlighting extremely undervalued AI stocks that could benefit from current economic trends, such as Trump-era tariffs and the onshoring movement [2]

Core Viewpoint - Shares in America's "Quantum Four" quantum computing companies experienced significant gains, with stock prices increasing by double-digit percentages [1] Group 1 - D-Wave, IonQ, Quantum Computing, and Rigetti are the four companies identified as the "Quantum Four" [1] - The surge in stock prices indicates a growing investor interest in the quantum computing sector [1] - The double-digit percentage increases reflect a strong market response to developments within the quantum computing industry [1]

We recently published Jim Cramer Discussed These 11 Stocks & The Market’s 3rd Bull Run Anniversary. IonQ, Inc. (NYSE:IONQ) is one of the stocks Jim Cramer recently discussed. IonQ, Inc. (NYSE:IONQ), a quantum computing hardware and software services provider, is a frequent feature of Cramer’s morning show. In this appearance, he discussed the firm’s recent $2 billion equity offering: “Well just because of, I was talking to Carl the other day, when you want to see a peak in this Sherwood Forest that I’m t ...

IonQ stock is moving higher. Here's why.Shares of IonQ (IONQ 18.39%) are jumping on Monday, up 19.3% as of 2:05 p.m. ET. The spike comes as the S&P 500 (^GSPC 1.34%) and the Nasdaq Composite (^IXIC 2.05%) both saw green.A leader in the quantum computing space, IonQ's stock is gaining after JPMorgan Chase announced this morning that it will invest $10 billion in industries and technologies it considers strategically important as part of its Security and Resiliency Initiative. Quantum computing is one of 27 i ...

Core Themes in Quantum Computing Industry - Throughout Q3 2025, major quantum firms focused on liquidity and runway, with IonQ, Rigetti Computing, and D-Wave Quantum completing significant equity offerings to strengthen cash reserves amid rising R&D costs [1] - Vendors reported tangible technological advancements, including Rigetti's 36-qubit multi-chip quantum computer and IBM's Quantum System Two deployment in Japan [2] - Commercial partnerships gained traction, with Quantinuum and IBM forming strategic collaborations to test early quantum applications in various sectors [3] Company-Specific Insights IonQ - IonQ is expected to continue strong topline growth with a focus on reinvestment rather than immediate profitability, having raised $1.0 billion in July to support its aggressive strategy [7] - The company is expanding its technology portfolio through acquisitions, including Oxford Ionics and Vector Atomic, enhancing its capabilities in quantum sensing and PNT [7] - IonQ is projected to report a loss of $0.24 per share and revenues of $27.02 million, reflecting a 117.9% year-over-year improvement [8] Rigetti Computing - Rigetti is anticipated to show modest revenue growth amid investment and execution risks, having launched its 36-qubit system and secured $5.7 million in new orders [9] - The company reported $1.8 million in revenue and a net loss of $39.7 million, but improved its balance sheet with a $350 million equity raise [10] - Rigetti is expected to report a loss of $0.05 per share and revenues of $2.39 million, a slight year-over-year improvement [11] D-Wave Quantum - D-Wave is positioned for operational momentum with a strong liquidity base of $819 million, focusing on R&D and commercialization [12] - The launch of the Advantage2 quantum computer is expected to contribute positively to Q3 revenues, alongside new partnerships in various sectors [12] - D-Wave is projected to report a loss of $0.07 per share and revenues of $3.12 million, marking a 66.8% year-over-year improvement [13]

Quantum computing stocks jumped Monday, continuing their roller-coaster ride in 2025. Amid their market volatility, investors watching quantum stocks should pay attention to a key IBD metric — average true range. On the news front, IonQ (IONQ) on Monday claimed advances in simulating chemical reactions in collaboration with a top automotive manufacturer. Quantum computing stocks have been volatile in 2025 amid controversy involving Nvidia (NVDA) CEO Jensen Huang, who initially cast doubt over how soon comme ...

Quantum computing stocks rallied on Monday as broader markets breathed a sigh of relief after President Trump appeared to cool trade tensions with China. Additionally, the largest bank in the country has expressed interest in the quantum computing sector as part of a significant push to support national security interests. RGTI stock is flying. See the real-time price action here. JPMorgan's $1.5 Trillion InitiativeJPMorgan Chase & Co. (NYSE:JPM) announced on Monday that it will make direct equity investmen ...